The Competition Commission of India (CCI) has approved the proposed acquisition of cement plants of Jaypee Cement Corporation Limited, comprising an integrated cement unit at Sewagram and grinding unit at Wanakbori in Gujarat by Ultratech Cement Limited (Ultratech). Jaypee Cement Corporation Limited is a wholly owned subsidiary of Jaiprakash Associates Limited (Jaypee).

Both Ultratech and Jaypee are engaged in the manufacture and marketing of different varieties of cement across India. The combined capacity of sewagram and wanakbori plants is 4.8 MTPA.

The Commission vide its order dated 20.12.2013 is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, approved the proposed combination under sub-section (1) of Section 31 of the Act.

Merger clearance: regulator found no appreciable adverse effect on competition, allowing the cement asset acquisition. The regulator concluded, after merger control assessment of Ultratech's proposed acquisition of Sewagram and Wanakbori cement assets from Jaypee, that the transaction did not raise concerns of an appreciable adverse effect on competition in India and cleared the combination under the statutory approval route.